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November 6, 2020

Societe Generale wealth income declines in Q3 2020

The asset and wealth management business line of Societe Generale has posted a net banking income of €210m for the third quarter of this year.

This is a decline of 3.7% compared to the third quarter of last year.

Following the changes in the group structure, the asset and wealth management business is part of the French banking group’s Global Banking and Investor Solutions division, which reported 1% improvement in net banking income to €2.03bn.

For the quarter, private banking activities posted a net income of €153m. It is 7.3% than the year ago figure.

The weaker performance was attributed to challenging market conditions and weaker activity.

Assets under management were stable at €114bn, while net inflows stood at €1.8bn in the first nine months of the year.

However, net banking income at asset management business Lyxor jumped 10.4% year-on-year to €53m, with recovery in equity markets and ETF segment. The unit’s assets under management totalled €133bn as of 30 September 2020.

Group highlights

Societe Generale’s gross operating income soared by 14.6% following a rebound in revenue in all activities.

The group’s net banking income decreased from €5.98bn to €5.8bn. The gross operating income increased from €1.82bn to €1.98bn on a year-on-year basis.

The reported group net income increased from €854m in the third quarter of 2019 to €862m.

Operating expenses also dropped by 8.2% to €3.83bn in 2020 Q3.

Societe Generale group CEO Frédéric Oudéa said: “The Societe Generale Group’s Q3 results illustrate the ability of all our businesses to rebound, after the exceptional lockdown period that we have experienced, and to adapt to a still very uncertain environment.

“The performances reflect our efforts in terms of commercial development, cost control and rigorous risk management. The solidity of the balance sheet, both in terms of asset quality and level of capital, enables us to approach the coming months with confidence and build our new strategic roadmap on sound foundations.”

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